Notice · Construction & Infrastructure

Security of payment: payment schedule with reasons for withholding (NSW, with Queensland and Victorian notes)

Payment schedule responding to a security of payment claim, stating the scheduled amount and every reason for withholding item by item, because reasons left out generally cannot be raised at adjudication.

Kind
Notice. A formal notice to serve or publish.
Where it applies
New South Wales, Queensland, Victoria
AI use
Red Keep AI out of the decisive steps. A lawyer does the work.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use when a respondent receives a payment claim under the NSW Act (or adapt for Queensland or Victoria) and intends to pay less than the claimed amount. Serve it within the contract period or the statutory period, whichever ends first.

How AI may be used

Lawyer-led. AI may map each claimed item to the contract, site records and assessments, but reasons not included in the schedule may be shut out at adjudication, so the lawyer settles every reason.

AI may

  • Build the item-by-item table comparing claimed and assessed amounts, with document references.
  • Collect candidate reasons from the superintendent's assessment, defects reports and correspondence for the lawyer to review.
  • Check that every claimed item has a response line and a reason where the amount is reduced.

AI must not

  • Must not decide which reasons to include or omit.
  • Must not calculate liquidated damages or set-offs as final figures without lawyer review of the contract.
  • Must not serve the schedule or calculate the final deadline without lawyer confirmation.

The lawyer checks

  • Every reason the respondent may want to rely on at adjudication is stated in the schedule.
  • Each reason is specific enough for the claimant to understand it.
  • The schedule is served before the earlier of the contract period and the statutory period.
  • Set-off, liquidated damages and contra-charges are permitted by the contract and quantified.

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

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